Gold prices have risen, and the US dollar has dipped amid increased market uncertainty, underscoring the importance of investors remaining cautious following the US Supreme Court’s ruling striking down Donald Trump’s tariff policy.
One expert described the situation as an “unholy mess” after Trump hit back at the ruling and said he was raising the global tariff rate to 15%.
The price of gold briefly hit about 5,280 US dollars (£3,901) per ounce before settling about 0.7% higher at 5,140 US dollars (£3,805) per ounce by early trading on Monday, illustrating a notable market shift.
Rising gold prices typically indicate that investors are seeking safe-haven assets, especially amid recent tariff policy developments and potential volatility affecting other investments, such as stocks and shares.
Meanwhile, the US dollar was down about 0.3% against the pound, to 0.74. The currency was also down around 0.3% against the euro, to 0.85.
US futures also fell for the S&P 500 and Dow Jones indexes, indicating stocks would move lower when Wall Street opens on Monday afternoon.
Investors and businesses around the world will be digesting developments over the weekend regarding Trump’s tariff agenda, emphasising the need for vigilance amid ongoing trade tensions.
The highest US court struck down a significant portion of tariffs in a major ruling on Friday, including the sweeping “reciprocal” tariffs he levied on nearly every other country, providing clarity that may help stabilise ongoing trade tensions.
These were imposed under the International Emergency Economic Powers Act (IEEPA).
The US president responded by saying he would be increasing the global tariff rate to 15%, “effective immediately”, hitting back at the Supreme Court’s ruling as an “extraordinarily anti-American decision”.
Russ Mould, investment director for AJ Bell, said Donald Trump’s latest announcement “creates yet another cliff edge and the events of recent days have left global governments scrambling to work out whether the deals they had agreed with the US will be affected, and also whether money collected by the US government will have to be paid back”.
Richard Hunter, head of markets at Interactive Investor, said: “Tariff developments have turned the situation into an unholy mess, prompting far more questions than answers.
“After the Supreme Court ruled against the president’s tariffs, the implications are far from clear.
“No reference was apparently made in the ruling as to whether the monies raised from tariffs so far would need to be repaid and, even if this is the case, whether the refunds would go to companies or the ultimate customer who will have suffered higher prices.”
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